Across the GCC, 2026 is shaping up to be a turning point for HR and payroll systems. Enforcement around Wage Protection Systems (WPS) is becoming stricter, scrutiny on End-of-Service Benefits (EOSB) calculations is increasing, and many organisations are now operating across multiple GCC countries with very different regulatory expectations. As a result, HR leaders are re-evaluating whether their current systems are truly fit for purpose—or whether a migration is overdue.
This guide is written for HR and payroll professionals planning or considering a system migration in the GCC, with a focus on what really matters in the 2026 regulatory and operational landscape.
Why many organisations are migrating now
Historically, HR and payroll migrations were often driven by growth, mergers, or dissatisfaction with user experience. In the GCC today, compliance risk has become just as strong a driver.
WPS frameworks across the region are more tightly enforced than ever, with penalties for late or inaccurate salary transfers increasing. Authorities are also paying closer attention to EOSB accuracy, particularly where long-serving employees, contract changes, or cross-border employment histories are involved. At the same time, many HR teams are managing payroll across multiple countries, each with its own portals, file formats, and statutory rules.
Legacy systems—and even some modern HR tools not designed for the region—struggle to handle this combination reliably. As a result, HR leaders are upgrading systems not just to improve efficiency, but to reduce exposure to compliance failures and employee disputes.
What makes a GCC payroll migration different
Migrating HR and payroll systems in the GCC is not the same as migrating in Europe or North America. Payroll here is tightly connected to government platforms, banking systems, and labour authorities.
In the UAE and Bahrain, WPS files must meet exact formatting and validation rules. In Saudi Arabia, payroll processing interacts with platforms such as Mudad and GOSI, and localisation requirements directly affect payroll eligibility. EOSB rules differ significantly by country and are influenced by contract type, service length, and termination reason. Even seemingly simple concepts—such as what constitutes a working day—can vary by jurisdiction.
A successful migration therefore depends less on generic “best practice” and more on how well a vendor understands and supports local requirements across each country you operate in.
The questions HR leaders should ask vendors in 2026
Before committing to a new HR or payroll system, HR leaders should move beyond feature lists and ask targeted questions that reveal how well a solution will perform in real GCC conditions.
1. How do you support WPS and salary transfer compliance by country?
Ask whether the system generates country-specific, authority-approved files, such as MOHRE-compliant WPS files in the UAE or LMRA-compliant files in Bahrain. It’s also important to understand how errors are flagged and corrected before submission, not after salaries are delayed.
2. How are End-of-Service Benefits calculated and validated?
EOSB rules differ across the GCC and change over time. Vendors should be able to explain how EOS calculations are configured per country, how contract changes are handled, and how historical service data is preserved during migration.
3. Can the system handle multi-country payroll without workarounds?
If you operate in more than one GCC country, ask how the system manages different calendars, public holidays, currencies, and statutory deductions simultaneously. A single regional dashboard is useful, but only if local compliance is not compromised underneath.
4. How does the system integrate with banks and government portals?
Payroll does not end at calculation. Ask how salary files are transmitted to banks, how acknowledgements are handled, and what happens when a file is rejected. Integration reliability is critical in regions where payment delays can trigger fines.
5. What controls exist to prevent payroll errors before go-live?
A strong vendor should describe parallel runs, validation checks, and scenario testing as part of migration—not just configuration. HR teams should not be the first line of defence after go-live.
6. How do you handle historical data migration and audits?
Migrating payroll history is often one of the most complex parts of a transition. Vendors should be clear on what data can be migrated, how it is validated, and how it supports future audits or employee queries.
7. What local expertise supports the implementation and ongoing operations?
Finally, ask who will support you after implementation. Local regulatory knowledge, responsiveness, and practical experience matter more than generic global support models in the GCC.
Preparing internally for a smoother migration
Even the best system will struggle if internal readiness is overlooked. HR teams should start by reviewing employee master data for accuracy, aligning HR and finance on payroll cut-off timelines, and documenting country-specific policies clearly. Decisions around calendars, leave rules, and EOS assumptions should be finalised before migration begins, not during testing.
Treating migration as a business change not just a technology project significantly improves outcomes.